G & G Closed Circuit Events, LLC v. Baaset

Background

G&G alleged that it held exclusive nationwide commercial distribution rights to a boxing program televised on April 22, 2023. It alleged that it sublicensed those rights to entities that could publicly show the program at commercial establishments, but that BNB Wings N’ Things LLC and Bukhari Najeeullah Baaset did not have a sublicense. According to the complaint, the defendants advertised that they would show the program and then publicly exhibited it at BNB Wings N’ Things, a commercial establishment in San Francisco, California.

G&G asserted claims under the federal Communications Act of 1934, the Cable & Television Consumer Protection and Competition Act of 1992, for conversion, and under California Business and Professions Code section 17200. G&G sought, among other relief, statutory damages of $170,000, compensatory damages, punitive damages, and attorneys’ fees.

Default and Motion to Strike

G&G personally served both defendants with the complaint on January 31, 2024. They did not answer or otherwise respond within the required period, so G&G moved for entry of default. The clerk entered defaults against both Baaset and BNB Wings N’ Things LLC on March 18, 2024. Baaset filed an answer three days later.

G&G moved to strike Baaset’s answer because a default had already been entered. Because Baaset was representing himself, the court treated his answer and his opposition to the motion as also asking the court to set aside his default under Federal Rule of Civil Procedure 55(c). That rule permits a court to set aside an entry of default for “good cause.” The court considered whether Baaset’s conduct caused the default, whether he might have a valid defense, and whether reopening the matter would unfairly harm G&G.

Ruling

The court found good cause to set aside Baaset’s default. It found no indication that he intentionally or improperly failed to respond, particularly because he was representing himself and filed his answer about a month late. The court also found that he might have a valid defense because he largely denied the complaint’s allegations, and that G&G would not suffer unfair harm because it had started the case only recently.

Judge Edward Chen therefore set aside Bukhari Najeeullah Baaset’s default and denied G&G’s motion to strike his answer. The court stated that the default against BNB Wings N’ Things LLC remained in place. Baaset may represent himself, but he may not represent BNB Wings N’ Things LLC; that company may appear only through a lawyer.

The court also referred the case to a settlement conference before a magistrate judge, ordered that the conference occur within 120 days, and temporarily stayed the proceedings until the conference was completed. The parties must file a joint status report within one week after the conference stating whether the case settled and proposing next steps. The order disposed of Docket No. 16.